GoFundMe campaigns helped wealthy households significantly more than low-income households in the aftermath of the Marshall Fire, according to new research from the University of Colorado Boulder.
Construction in various stages is seen on homes on the 1100 Block of Hillside Lane in Louisville on Monday. A University of Colorado Boulder study found GoFundMe campaigns helped wealthy households significantly more than low-income households in the aftermath of the Marshall Fire.
“These crowdfunding campaigns seem to draw pretty heavily from people’s personal networks, which likely explains this disparity,” CU Boulder Finance Professor Emily Gallagher said. “We knew people who had lost their homes, so I was spending a lot of time looking at GoFundMe campaigns and noticing just how different some of the amounts raised were,” Cookson said.
However, the average donation amount wasn’t as large of a factor compared to having more donors, especially more donors from outside of Boulder County. Additionally, higher-income households were more likely to have broader geographic networks. This pattern, Cookson said, is because higher-income people were more likely to have a friend or colleague to start the campaign for them.
“We can say people who raised more than $30,000 in their GoFundMe campaigns have been able to start rebuilding between four and eight months faster than people who raised less than that,” Gallagher said.
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